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By contrast, in the third quarter, loans at American commercial banks insured by the Federal Deposit Insurance Corporation that were more than 90 days past due or were nonperforming represented 1.24percentt of all outstanding loans.
Dai Xianglung, the central bank governor, said in a recent speech that even under the most generous accounting rules, one-quarter of the loans left on the books of the country's banks were nonperforming.
Officials said about 30percentt of the loans in the deal on Wednesday were nonperforming, meaning that payments were not being made on them, but said that percentage could increase depending on how much the houses being financed had dropped in value.
The Marshall & Ilsley Corporation, a small Milwaukee-based bank, indicated Tuesday that the percentage of its loans that were nonperforming dropped from the previous quarter for the first time in four years, though Marshall & Ilsley has been more aggressive in dealing with its problem loans than many of its peers.
Example: A third of the bank's loans to Greece's shipping industry were nonperforming.
The banking system remained deeply depressed; 25% of loans at private banks were nonperforming, and such key public institutions as the Banco de la República and the Mortgage Bank (Banco Hipotecario) saw a staggering nonperforming-loan rate of 50%.
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Only 1.3 percent of bank loans are nonperforming now, but the rate could rise quickly if households start to default.
Now they are nonperforming assets, not a small power forward and a bulky 7-foot-2-inch center.
The central bank's deputy governor, Chen Shih-Mestimatedmathatthat up to 10percentt of loans may be nonperforming.
Bank of Thailand data estimating that 13percentt of all loans at commercial banks are nonperforming understate the real extent of the problem, according to Standard & Poor's.
Noting that some 22percentt of bank loans are nonperforming, he said, "Unfortunately, the country doesn't have the tools to withstand it".
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